DG FastChannel priced an offering of 3,175,000 shares of new stock at $31.50 per share. Net of offering expenses, the company expects to put about $94 million in its coffers. The underwriters can also tap a greenshoe of 476,250 additional shares, if needed, to cover overallotments.
DG FastChannel said it intends to use the cash from the sale to retire some of the debt outstanding under its credit facility, fund potential acquisitions and for general corporate purposes.
Roth Capital Partners, LLC is acting as Sole Book-Running Manager and BMO Capital Markets Corp. is acting as Co-Manager. Closing is expected April 13th.
Back in September 2009 DG FastChannel’s stock dipped to $16.70. It closed Thursday at $34.84 following word of the successful stock sale.
DG FastChannel provides digital distribution of spots, syndicated programs, and video news releases to traditional broadcasters, online publishers, and other media outlets.